World Bank Mobilizes $3.2 Billion for Pakistan Since 2022

ISLAMABAD: (Staff Reporter) – The World Bank Group has mobilized nearly $3.2 billion in private capital for Pakistan since 2022, supporting investments in renewable energy, environmental protection and private sector development.

According to information released by the World Bank Group, global private capital mobilization more than tripled over four years, increasing from $35 billion in fiscal year 2022 to a record $112 billion in fiscal year 2026.

Private capital mobilization refers to efforts to attract private investors to development projects. The World Bank Group facilitates this process by improving market conditions, preparing investment-ready projects, reducing financial risks and providing funding and guarantees to encourage private sector participation.

Dasu Hydropower Project Supports Clean Energy

The Dasu Hydropower Project is among the major initiatives demonstrating this approach in Pakistan. The Water and Power Development Authority (WAPDA) is developing the project with World Bank Group support to increase the country’s supply of affordable and renewable electricity.

According to the reported financing arrangements, an initial $588 million credit from the International Development Association (IDA), combined with a $460 million World Bank guarantee, helped mobilize $338.5 million from international lenders and Rs144 billion from a consortium of domestic banks.

The first phase of the project is expected to add 2,160 megawatts of renewable electricity generation capacity. It is also anticipated to create local employment opportunities and stimulate economic activity in surrounding communities.

Punjab Green Development Programme Attracts Investment

The Punjab Green Development Programme is another example of efforts to encourage sustainable investment. Backed by a $200 million IDA credit, the initiative has supported improvements in environmental governance and encouraged businesses to adopt cleaner production methods.

The programme reportedly mobilized $102.7 million in green investment, including $52.7 million from private sources.

As part of the initiative, 98 small and medium-sized enterprises and 653 microenterprises adopted cleaner technologies. The programme also contributed to the creation of approximately 1,600 jobs, highlighting the potential economic benefits of environmentally sustainable business practices.

World Bank Partnership Focuses on Sustainable Development

The World Bank Group said its investments form part of a ten-year partnership with Pakistan aimed at promoting inclusive and sustainable economic development.

The Country Partnership Framework prioritizes strengthening human capital, encouraging sustainable private sector growth and improving the country’s economic, social and environmental resilience.

Greater private investment, supported by development financing and cooperation with international partners, could help Pakistan expand infrastructure, improve energy supplies, create employment opportunities and strengthen long-term economic growth.

The reported $3.2 billion in mobilized private capital highlights the role of development institutions in attracting investment for projects that support Pakistan’s energy needs, environmental objectives and broader development priorities.